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If you're thinking agents just unlock doors and list houses online, I completely understand the confusion. Because from the outside looking in, it can seem pretty straightforward. But the reality is that real estate agents wear about fifteen different hats throughout any transaction.
Think of it like this: a real estate agent is part detective, part negotiator, part therapist, and part project manager all rolled into one. They're professionals who've earned their license to organize and assist in real estate transactions, and they typically work on commission. Their success is directly tied to yours, which keeps everyone motivated to get the best possible outcome.
Real estate agents don't work in a vacuum. They may work independently, on behalf of a brokerage, or even under another agent. According to the National Association of REALTORS® 2025 Member Profile, the typical agent now has 12 years of experience in the industry, up from 10 years in 2024. That experience matters when you're navigating negotiations or trying to price your home correctly in a shifting market.
Not all agents do the same job, which honestly surprised me when I first started learning about the mortgage industry. There are three main types you'll encounter.
Listing agents represent the seller and help price your home competitively, market it effectively, and negotiate the best possible deal when offers come in. They know how to stage a property, photograph it in the best light, and position it to attract serious buyers. A good listing agent will tell you the truth about your home's value even when it's not what you want to hear.
Buyer's agents work exclusively for buyers and help you find properties that match your needs and budget, schedule showings, research neighborhoods, and advocate for you during negotiations. Since August 17, 2024, buyers now sign written agreements with their agents before touring homes, which has actually increased transparency about what services you're getting and how much they cost.
Dual agents represent both the buyer and seller in the same transaction. While it's legal in many states, it creates potential conflicts of interest because the agent is trying to serve two masters. Some buyers and sellers prefer to avoid this situation entirely and work with separate representation.
Let me simplify this for you. All REALTORS® are real estate agents, but not all real estate agents are REALTORS®. The difference comes down to membership.
A REALTOR® is any real estate professional who's joined the National Association of REALTORS® and agreed to follow their strict code of ethics. This applies whether they're an agent, broker, property manager, appraiser, or another industry professional. Currently, NAR represents about 1.5 million members across the country, according to their latest data.
REALTORS® have committed to higher professional standards and continuing education requirements. They're also bound by a code that goes beyond basic licensing laws. That said, plenty of excellent agents who aren't NAR members still provide outstanding service. It really comes down to the individual's experience, knowledge, and dedication to their clients.
Here's what customers never tell you when they start working with an agent: they've already looked at Zillow for weeks, maybe even months. They think they know the market. But there's a difference between browsing listings online and truly understanding neighborhood dynamics, school district boundaries, property tax variations, and which streets flood during heavy rain.
Real estate agents live and breathe the local market. They know which neighborhoods are trending up, where the best schools are located, and which areas might have issues that don't show up in online listings. This kind of insider knowledge can save you thousands of dollars and prevent major headaches down the road.
For instance, a local agent might know that certain historic districts have strict renovation requirements that could affect your remodeling plans. Or they might know that a particular subdivision has lower-than-expected resale values despite looking nice on paper. You can't get this information from a website.
According to NAR's Quick Real Estate Statistics from 2024, 88% of home buyers used a real estate agent as their primary information source during their home search. Even in our digital age with instant access to property data, people still value the human insight and local expertise that experienced agents bring to the table.
Pricing a home correctly from day one is absolutely critical. Price it too high and it sits on the market forever, eventually requiring price cuts that make buyers suspicious. Price it too low and you leave money on the table that you'll never get back.
Real estate agents use comparative market analysis to determine appropriate pricing. They look at recently sold properties in your area with similar features, square footage, condition, and location. They also factor in current market conditions, whether it's a buyer's or seller's market, and seasonal trends that might affect demand.
For buyers, agents help you understand whether a home is overpriced based on comparable sales. They'll point out when a property has been sitting on the market for months, which often signals an opportunity for negotiation. This financial guidance can literally save you tens of thousands of dollars on a purchase.
The median home price in the United States reached $388,700 in February 2024, with Goldman Sachs predicting 4.4% growth through 2025, according to data compiled by Agent Advice. Understanding where a specific property falls within that broader market context requires experience and analytical skills that most buyers and sellers simply don't have.
Let's be real for a second. Between work, family obligations, and everything else life throws at you, who has time to coordinate endless property showings? Your real estate agent does this for a living.
Agents have access to the Multiple Listing Service, which is the comprehensive database that real estate professionals use to share property information. While some MLS data appears on public websites, agents see listings first and have access to additional details that aren't publicly available. They can set up automated searches based on your exact criteria and alert you immediately when matching properties hit the market.
Beyond just finding properties, agents schedule showings around your availability, coordinate with listing agents or sellers, and often provide preliminary assessments during tours. They'll point out potential issues you might miss, like signs of water damage, foundation problems, or maintenance red flags that could cost you later.
For sellers, listing agents coordinate showing schedules, provide lockbox access for other agents, gather feedback after showings, and track which properties buyers are also considering. This competitive intelligence helps refine your strategy if needed.
Here's the human side of this: negotiation can be emotional and stressful. When you're negotiating directly with someone buying or selling your home, emotions run high and logic sometimes goes out the window. Having a professional buffer who can keep things rational and focus on the numbers makes a huge difference.
Real estate agents negotiate professionally every single day. They know what's reasonable to ask for, what concessions are common in your market, and how to structure offers that get accepted without leaving money on the table. They understand inspection negotiation, appraisal gap coverage, closing cost credits, repair requests, and all the other moving pieces that come up between contract and closing.
According to NAR data, 61% of home buyers said the top benefit their agent provided was helping them understand the process, while 58% valued their agent pointing out unnoticed features or faults with properties. But negotiating better sales contract terms ranked right up there as one of the most valued services.
I heard about a client yesterday who asked whether she should counter-offer on a home inspection that found $15,000 worth of needed repairs. Her agent helped her understand which repairs were legitimately urgent versus cosmetic, how to structure a credit request rather than demanding actual repairs, and how to keep the seller motivated to close rather than walk away and find another buyer. Without that guidance, she might have lost the house or ended up paying for repairs the seller should have covered.
While agents can't give mortgage advice, they work closely with lenders throughout the transaction and can guide you toward reputable mortgage professionals. Getting preapproved for a loan is one of the first steps in the home buying process, and agents understand what lenders look for and how different loan programs work.
For sellers, agents verify that potential buyers have legitimate financing in place before accepting offers. Nobody wants to waste three weeks in escrow only to have the buyer's financing fall through. Agents know which lenders close on time and which ones tend to create last-minute problems.
Since I work in mortgage project management at AmeriSave, I see this coordination happen daily. The best transactions occur when the real estate agent and mortgage team communicate regularly, share updates proactively, and solve problems together before they derail the closing. When you're working with AmeriSave, we make this process smoother through our digital lending platform that keeps everyone informed in real-time.
The textbook answer is that a typical real estate transaction involves 30 to 50 different documents. But really, it's more like a hundred pages of contracts, disclosures, addendums, inspection reports, title documents, and closing statements.
Real estate agents ensure you complete everything correctly and on time. They know which forms are required in your state, what disclosures sellers must provide, and how to handle contract contingencies properly. Missing a deadline or filling out a form incorrectly can cost you thousands of dollars or even kill the entire deal.
State-specific regulations add another layer of complexity. What's required in California differs significantly from requirements in Texas or Florida. Agents stay current on these regulations through continuing education and daily practice, so you don't have to become a legal expert overnight.
Even after you think you're done signing documents, more paperwork appears. Amendment forms for negotiated repairs, extensions if financing takes longer than expected, HOA documents, seller's disclosures that need updating, appraisal reports—the list goes on. Your agent tracks all these moving pieces and makes sure nothing falls through the cracks.
Home inspections and appraisals can make or break a deal. Agents schedule these inspections, recommend qualified professionals, and help you interpret the results. When the inspection report comes back with findings, your agent advises on what's normal versus what's a legitimate concern requiring negotiation.
If the appraisal comes in lower than the contract price, agents know how to handle that situation. Options might include negotiating a lower price, bringing more cash to closing to cover the gap, challenging the appraisal with additional comparable sales data, or restructuring the deal entirely. Without experienced guidance, these issues can derail transactions that should have closed successfully.
Real estate agents also ensure that contractors have proper permits and authorization for any work being done on the property. They verify that major systems like HVAC, plumbing, and electrical are functioning properly and flag potential long-term issues that sellers might be hiding.
The closing process involves coordinating with lenders, title companies, inspectors, appraisers, attorneys in some states, and other agents. Real estate agents act as the central hub managing all these relationships and keeping the transaction moving forward.
They prepare you for what to expect at closing, review the final settlement statement to catch any errors, and make sure all conditions are satisfied before the closing date. When problems pop up at the last minute, experienced agents know how to troubleshoot quickly and keep things on track.
According to recent industry data, the typical closing timeline runs 30 to 45 days from contract to keys, though it can vary based on financing type and local practices. Your agent manages that entire timeline and makes sure everyone meets their deadlines.
Are agents still available after closing? The answer is absolutely yes. Good agents view closing as the beginning of a long-term relationship, not the finish line.
After closing, your agent should follow up within 30 days to see how you're settling in and whether you have any questions. They remain available to answer questions about your contract, recommend local service providers like plumbers, electricians, or landscapers, and provide guidance on homeownership matters.
Many agents send periodic market updates, so you understand how your investment is performing. They might reach out during the holidays, remember your anniversary of homeownership, or check in when major market changes affect your neighborhood. This ongoing relationship often leads to future transactions when you're ready to move again, or referrals to friends and family.
Real estate is fundamentally a relationship business. The best agents understand that providing excellent service after the sale is just as important as getting to the closing table. According to NAR statistics, 26% of sellers used the agent they'd previously worked with to buy or sell a home. That repeat business comes from agents who stay connected and provide value long after earning their commission.
The real estate industry experienced seismic changes in 2024 following the NAR settlement of multiple lawsuits. Understanding these changes is crucial whether you're buying or selling in 2025.
In March 2024, the National Association of REALTORS® agreed to a $418 million settlement to resolve claims that its policies artificially inflated real estate commissions. The settlement addressed concerns that the traditional commission structure, where sellers paid both their agent and the buyer's agent, removed incentive for buyers to negotiate fees and potentially steered agents toward properties offering higher commissions.
These practice changes took effect August 17, 2024, fundamentally altering how real estate professionals communicate about and negotiate compensation.
No more commission offers on MLS. Previously, listing agents would advertise on the MLS exactly how much they were offering to buyer's agents, typically 2.5% to 3% of the sale price. Under the new rules, commission offers cannot be published on MLS platforms to prevent buyer's agents from steering clients toward homes offering higher commissions rather than homes that best fit their needs.
Written buyer agreements are now required before touring homes. These agreements must clearly disclose the amount or rate of compensation the agent will receive and include a conspicuous statement that broker fees are fully negotiable and not set by law. Several states already required these agreements, but it's now mandatory across the country.
The new rules require upfront conversations about costs and services. Buyers and sellers now have more control over what they pay and can shop around for competitive rates.
As a buyer in 2025, you'll sign a representation agreement with your agent before starting your home search. This agreement will specify exactly what services your agent provides and how much they'll be paid. You can negotiate these terms.
You have several options for paying your agent. You can pay them directly, negotiate with the seller to cover the cost as part of the transaction, or structure a combination. Some sellers still offer to pay buyer's agent fees to attract buyers, especially in slower markets, but it's no longer automatic or advertised publicly.
The median gross income for REALTORS® was $58,100 in 2024 according to NAR's Member Profile, up slightly from $55,800 in 2023. Agents typically handle 10 transactions per year with a median sales volume of $2.5 million. These numbers help you understand the economic realities agents face and why fair compensation for their services remains important even with the new structure.
Sellers no longer automatically pay both agents' commissions. You'll negotiate your listing agent's fee directly, and that amount is fully negotiable. Whether to offer compensation for the buyer's agent is now entirely your choice, made in consultation with your listing agent based on market conditions and strategy.
Historically, total commissions ranged from 5% to 6% of the sale price. By some estimates, commissions are expected to drop 25% to 50% under the new model, according to TD Cowen Insights analysis cited in CNN Business reporting. For a home selling at the median price of $388,700, this could translate to savings of $6,000 to $12,000 for sellers.
Some sellers still choose to offer buyer's agent compensation to make their property more attractive. Your listing agent can help you decide the right strategy for your situation.
Choosing the right agent is one of the most important decisions in your transaction. Here's how to find someone who'll genuinely advocate for your interests.
Word-of-mouth remains the most reliable way to find good agents. According to recent industry statistics, 43% of clients found their agent through family or friend referrals, while 26% used an agent they'd previously worked with to buy or sell a home.
Ask friends, family, and coworkers about their experiences. Don't just ask who their agent was—ask specific questions about responsiveness, negotiation skills, problem-solving abilities, and whether they'd work with that agent again. 88% of clients said they would use their agent again or recommend them to others, which tells you that most people are happy to share their experiences.
Use social media to cast a wider net. Post on Facebook asking for local agent recommendations. You'll likely get multiple suggestions along with detailed feedback about each person's strengths.
Once you have several names, schedule interviews with at least two or three agents. Nearly 81% of sellers contacted only one agent, and 75% would use their agent again, which suggests that most people get it right. But comparing options gives you more confidence in your choice.
During interviews, ask specific questions about their knowledge of your target area. How have average home prices changed in this neighborhood over the past two years? Which areas have the highest and lowest crime rates? What are the schools like, and how do attendance boundaries affect property values? Where are the best parks, restaurants, and community amenities? How quickly are homes selling in my price range? What types of buyers or sellers are most active right now?
The best agents will teach you something new about the area you thought you already knew. That insider knowledge is what you're really paying for.
Verify that your potential agent holds an active real estate license in good standing. Most states maintain public databases where you can look up licenses and check for any disciplinary actions or complaints.
Ask about their transaction history. How many deals did they close last year? What's their average list-to-sale price ratio? How long do their listings typically stay on the market compared to area averages? Experienced agents with strong track records should happily share these statistics.
Look for specializations that match your needs. According to NAR, 71% of real estate agents specialize in residential real estate. But within that category, some focus on first-time buyers, others on luxury properties, some on investment properties, and others on specific neighborhoods or property types. Find someone whose expertise aligns with your situation.
Don't be shy about asking for references from recent clients. Reputable agents will gladly connect you with past clients who can speak to their experience. If an agent refuses or hesitates to provide references, consider that a red flag.
When you contact references, ask specific questions. Was the agent responsive to calls, texts, and emails? Did they communicate clearly about the process and next steps? How did they handle problems or unexpected issues? Were there any surprises or misunderstandings about costs? What did they do exceptionally well? If you could change anything about working with them, what would it be? Would you absolutely use them again or recommend them without reservation?
These conversations provide invaluable insights that you won't get from a resume or marketing materials.
Your communication preferences matter. Some people want daily updates and prefer texts, while others prefer weekly phone calls. Some need to see properties during weekday mornings, while others can only tour on weekends.
During your initial conversations, explain exactly what type of communication and availability you need. Pay attention to whether the agent seems genuinely flexible or if they're trying to fit you into their preferred working style.
The typical REALTOR® worked 35 hours per week in 2023 according to NAR data, though this varies widely. Part-time agents might have limited availability, while full-time professionals can typically accommodate a wider range of schedules. Make sure their availability matches your needs, especially if you're working with tight timelines.
In 2025, effective real estate agents need strong digital marketing skills. Check out their website and social media presence. Do they have professional property photos and video tours? Are they active online with current content? Do they understand how to use digital tools to market properties effectively?
According to various industry reports, 73% of homeowners are more likely to list with an agent who uses video to market properties. Listings with video receive 403% more inquiries than those without. Professional photography also matters—homes with professional photos sell 32% faster than those without.
Ask about their marketing plan specifically. For sellers, how will they promote your property beyond just listing it on the MLS? For buyers, what tools and resources do they use to find properties before they hit the public market?
Finally, trust your gut. You'll be working closely with this person during a stressful time, so chemistry matters. Do they listen to your concerns? Do you feel heard and understood? Do they explain things clearly without talking down to you? Do they seem genuinely interested in helping you achieve your goals?
The relationship between you and your agent should feel collaborative, not adversarial. If something feels off during initial conversations, keep looking. There are 1,554,604 real estate agents working in the United States according to current data—you have plenty of options.
Let's talk money, because understanding how agents get paid helps you negotiate effectively and appreciate the work they do.
Real estate agents work as independent contractors, not salaried employees. This means they don't receive regular paychecks, benefits, health insurance, or paid time off. Instead, they earn commissions when transactions close. If deals fall through, they've invested time, money, and effort with zero return.
Commission rates are now openly negotiable under the post-settlement rules. Before the changes, seller's agents typically earned 2.5% to 3% of the sale price, with the same going to buyer's agents, totaling 5% to 6% combined. Under the new model, these percentages remain a starting point for negotiation, but there's much more flexibility.
Agents don't keep the full commission. They split their earnings with their brokerage, typically starting at 50/50 for new agents and graduating to 70/30 or better as they gain experience and produce higher sales volumes. They also pay for their own marketing, licensing, continuing education, MLS fees, and other business expenses out of their share.
Income for real estate agents varies dramatically based on experience, location, market conditions, and hours worked. According to the U.S. Bureau of Labor Statistics data from May 2024, the median annual income for real estate agents is $56,320. The range spans from roughly $42,000 at the 25th percentile to $89,000 at the 75th percentile.
Top performers—especially those working in luxury or high-volume markets—regularly earn six figures. The highest-earning agents make $125,000 or more annually before brokerage splits and expenses. Some top producers in major metropolitan markets earn several hundred thousand dollars per year.
On the flip side, 62% of agents with two years or less experience earned less than $10,000 in 2023, according to NAR data. The first year in real estate is notoriously difficult, with many new agents leaving the industry before establishing themselves.
Location dramatically affects earning potential. Agents in Washington D.C., Washington state, and New York lead with average incomes approaching or exceeding $95,000-$97,000 per year. Agents in West Virginia and Florida average in the mid-$60,000 range, according to 2025 real estate salary data.
When you understand that your agent might spend 40 to 80 hours on your transaction, pay for professional photography, marketing materials, MLS access, and other costs, and might not get paid if the deal falls through, the commission structure makes more sense.
A knowledgeable agent negotiating $10,000 off your purchase price or selling your home for $15,000 more than you could have achieved on your own easily justifies their fee. The average list-to-sale price ratio for agent-assisted sales significantly outperforms for-sale-by-owner transactions. According to NAR data, the typical FSBO home sold for $380,000 compared to $435,000 for agent-assisted sales in recent reporting periods—a $55,000 difference.
That's not to say you shouldn't negotiate. Under the new rules, everything is negotiable. But understanding the value you're receiving and the work involved helps you negotiate fairly and build a positive working relationship.
As someone who has worked extensively with first-time buyers in various roles at AmeriSave, I've seen how overwhelming the process can be when you've never done it before. A good real estate agent becomes absolutely essential for first-time buyers.
First-time buyers don't know what they don't know. You've probably never reviewed a home inspection report, negotiated repairs, or read a preliminary title report. You might not understand the difference between pre-qualification and pre-approval, or what an appraisal contingency protects. These knowledge gaps create vulnerability that unscrupulous sellers or their agents could exploit.
An experienced agent levels the playing field. They anticipate questions before you even know to ask them. They spot red flags you'd miss. They prevent rookie mistakes that could cost thousands or create legal problems down the road.
Many first-time buyers qualify for special programs offering lower down payments, reduced mortgage insurance, or other benefits. Agents familiar with first-time buyer programs can guide you toward resources you might not find on your own.
For example, FHA loans require only 3.5% down payment. VA loans for veterans and active military require zero down payment. Many states and local governments offer down payment assistance programs or first-time buyer grants. Your real estate agent should know about these programs and connect you with lenders who specialize in them.
At AmeriSave, we work extensively with first-time buyers and offer multiple loan programs designed specifically for people buying their first home. When your real estate agent understands these programs and works collaboratively with your loan team, the entire process runs more smoothly.
Getting emotionally attached to homes outside your budget, waiving inspections to make offers more competitive, not understanding closing costs, failing to budget for maintenance and repairs, and choosing locations based on current lifestyle rather than future needs—agents help you avoid all these pitfalls.
The share of first-time buyers dropped from 32% in 2023 to just 24% in 2024, according to fortunly.com reporting on industry data. This decline reflects affordability challenges, but it also means first-time buyers who do enter the market need expert guidance even more. Competition remains fierce, inventory stays tight, and prices continue rising. Having an experienced advocate on your side isn't optional—it's essential.
With all the technology available today, some people wonder if real estate agents will even exist in a few years. Having worked in the tech side of mortgage for years now, I can tell you that technology enhances what agents do—it doesn't replace them.
Yes, buyers can search properties online. Yes, virtual tours and 3D home models provide incredible detail remotely. Yes, digital document signing streamlines paperwork. But technology doesn't negotiate repairs, interpret inspection reports, understand local market nuances, or provide emotional support during stressful moments.
Homes are selling at their fastest rate since 1990, with the average listing finding a buyer within a week according to recent data. In that kind of competitive environment, having an agent who can write a strong offer, respond immediately to opportunities, and negotiate effectively becomes even more valuable.
According to various real estate statistics, 100% of home buyers used the Internet in their search process in recent surveys. But 88% of those same buyers still used a real estate agent or broker to complete their purchase. People use technology for research but still want professional guidance for execution.
Real estate transactions involve huge financial and emotional stakes. Technology can't provide reassurance when you're nervous about making the biggest purchase of your life. It can't read body language during negotiations or sense when to push harder versus when to back off. It can't make judgment calls about whether a home inspection finding is a deal-breaker or manageable.
The most successful agents in 2025 combine technological proficiency with interpersonal skills, market knowledge, and negotiation expertise. They use data analytics, digital marketing, and virtual tools, but they apply human judgment and emotional intelligence to serve their clients effectively.
Agent demographics are shifting. The median age of REALTORS® increased from 55 in 2023 to 57 in 2025, with the proportion of agents 65 and older increasing 7% year-over-year to 29%. This aging of the profession might create opportunities for younger agents who combine traditional skills with digital native comfort.
At the same time, 74% of current members say they're "very certain" they'll stay in real estate for at least two more years, demonstrating confidence in the profession despite recent industry disruptions.
What won't change is the fundamental value proposition: expert local knowledge, skilled negotiation, transaction management, and trusted guidance through complex processes. As long as buying and selling homes remains complicated, stressful, and high-stakes, people will pay for professional help.
When you're ready to move forward with buying a home, connecting your real estate agent with your mortgage lender creates the smoothest possible experience.
At AmeriSave, we've built our entire platform around making the mortgage process simpler and more transparent. Our digital tools let you track your application status in real-time, upload documents securely, and communicate directly with your loan team. When your real estate agent knows we're handling your financing, they can trust that deadlines will be met and communication will flow smoothly.
We work with first-time buyers, experienced homeowners, those refinancing, and everyone in between. Our loan officers understand how to structure financing that makes your offer competitive while protecting your interests. Because we're a direct lender, we control the entire process—no delays caused by third-party processors or underwriters.
The best real estate transactions happen when everyone works together toward the common goal of getting you into your home. Whether you're buying your first starter home or your dream property, our team at AmeriSave is here to help make it happen.
Buying or selling a home ranks among the most significant financial and emotional decisions you'll make. Having a skilled, trustworthy real estate agent by your side makes that journey significantly less stressful and typically produces better financial results.
The real estate industry has certainly evolved, especially with the 2024 commission changes that increased transparency and negotiation flexibility. But the fundamental value agents provide—local expertise, skilled negotiation, transaction management, and trusted guidance—remains as important as ever.
When you find the right agent, you gain more than just someone who unlocks doors or lists your property online. You gain a knowledgeable advocate who's invested in your success, a problem-solver who navigates unexpected challenges, and a trusted advisor who helps you make informed decisions about what's probably your largest asset.
Whether you're a first-time buyer trying to navigate an overwhelming process, a growing family looking for more space, or someone downsizing for retirement, the right real estate agent makes all the difference between a smooth transaction and a stressful ordeal.
When you're ready to take the next step, whether that's getting pre-approved for a mortgage or starting your home search, AmeriSave is here to help. Our team of experienced loan officers can guide you through financing options, help you understand what you qualify for, and work with your real estate agent to make your home ownership dreams a reality.
Ready to get started? Start your mortgage application with AmeriSave today and take the first step toward your new home.
Real estate agent compensation is now fully negotiable following the August 2024 NAR settlement changes. Historically, total commissions ranged from 5% to 6% of a home's sale price, typically split between the listing agent and buyer's agent. Under the new model, these percentages serve as starting points for negotiation, but actual rates vary based on the services provided, local market conditions, and the agreement you reach with your agent.
For buyers, you'll sign a written agreement with your agent before touring homes that specifies exactly how much they'll be paid. You might pay them directly, negotiate with the seller to cover the cost, or structure a combination. For sellers, you'll negotiate your listing agent's commission directly, and you can choose whether to offer compensation for buyer's agents as part of your selling strategy.
By some estimates, these changes could reduce total commission costs by 25% to 50% according to TD Cowen Insights analysis. For a home at the median price of $388,700, this might translate to savings of $6,000 to $12,000. Actual costs depend on your specific situation and the value the agent provides. Don't choose an agent based solely on lowest price—the right agent can often negotiate savings or higher sale prices that far exceed their fee.
While you're not legally required to use an agent, the overwhelming majority of people still do. According to recent data, 89% of buyers purchased through an agent or broker, and 90% of sellers used an agent to sell their homes. Only about 6% of sellers chose the for-sale-by-owner option in 2024, which represents a historical low.
The numbers tell you why. The typical FSBO home sold for $380,000 compared to $435,000 for agent-assisted sales according to NAR data—a $55,000 difference. For buyers, agents provide access to properties before they hit public websites, negotiate better terms, and prevent costly mistakes during inspections and closing.
Consider your own expertise, available time, stress tolerance, and the complexity of your transaction. Buying or selling a home involves legal contracts, financial negotiations, and detailed knowledge of local markets. Most people lack the time, knowledge, and connections to do it as effectively as a professional. That said, if you're an experienced investor buying a property you already know in a simple cash transaction, you might successfully handle it yourself. But for most buyers and sellers, especially first-timers, an agent's value far exceeds their cost.
For sellers, homes are currently selling faster than they have in decades. The average listing finds a buyer within a week according to recent industry data, though this varies significantly by market, price point, and property condition. Finding a buyer is just the first step. The typical closing timeline runs 30 to 45 days from accepted offer to closing, allowing time for inspections, appraisals, financing, and paperwork.
From listing to closing, sellers should expect the process to take anywhere from six weeks to three months in normal markets. Homes that sit on the market longer than three weeks often end up requiring price reductions, which extends the timeline further. About 41% of listings receive a price reduction before getting an offer, according to 2025 statistics.
For buyers, the timeline varies even more. Most buyers find a home within eight weeks of starting their search, according to recent NAR data. In competitive markets with low inventory, the search can extend several months. Once you're under contract, expect 30 to 45 days to closing, assuming financing goes smoothly and no major issues arise during inspections.
Your agent can provide more accurate timelines based on current conditions in your specific market and price range. They'll also help you understand factors that might speed up or slow down your particular transaction.
The written buyer agreements now required as of August 17, 2024 should include clear terms about how either party can terminate the relationship. Most agreements specify a time period and outline conditions under which you can part ways.
If you're genuinely unhappy with your agent's service, communication, or results, you have options. Start by communicating clearly about your concerns. Sometimes misunderstandings can be resolved through direct conversation about expectations, communication preferences, or strategy.
If problems persist, contact the agent's broker to discuss your concerns. Most brokerages want to maintain their reputation and will work to resolve conflicts or reassign you to a different agent within their firm if necessary.
For serious ethical violations, you can file a complaint with your state's real estate commission, which licenses agents. This is typically a last resort for egregious conduct like misrepresentation, fraud, or clear violations of fiduciary duty.
The best approach is prevention. During initial interviews, discuss how the relationship would work, what happens if expectations aren't met, and whether the agreement includes an easy exit clause. Most experienced agents will happily include reasonable termination provisions because they don't want to work with unhappy clients either.
Good agents demonstrate their value through specific, measurable actions. They should respond to your calls, texts, and emails within a few hours during business hours. They should provide regular updates on market activity, showing feedback, and any developments affecting your transaction.
For buyers, your agent should be actively searching for properties matching your criteria, scheduling showings promptly, providing honest feedback about properties, and preparing you for each step of the process. They should write strong offers that get accepted without overpaying, negotiate effectively on your behalf, and coordinate all the moving pieces from contract to closing.
For sellers, your agent should develop a comprehensive marketing plan, price your home competitively based on detailed market analysis, provide regular updates on showings and feedback, and adjust strategy if needed. They should negotiate offers effectively to get you the highest possible price with the best terms.
Warning signs of poor agent performance include lack of communication, pushing you toward decisions that serve their interests rather than yours, unwillingness to answer questions or explain things clearly, cutting corners on due diligence or paperwork, or making you feel uncomfortable or pressured at any point.
Trust your instincts. If something feels off or you're consistently frustrated with the service you're receiving, those feelings are valid. A good agent should make the process less stressful, not more stressful. You're paying for professional service, and you deserve an agent who provides it.
Real estate agents aren't licensed to originate mortgages or provide specific lending advice. They work closely with lenders throughout every transaction and typically have strong relationships with multiple mortgage professionals in their market.
Your agent can recommend reputable lenders they've worked with successfully in the past. This is actually valuable because agents know which lenders close on time, which ones communicate effectively, and which ones create last-minute problems that put transactions at risk. Their experience can help you avoid problematic lenders and find ones who will make the process smooth.
Once you're working with a lender, your agent will coordinate with your loan officer throughout the transaction. They'll ensure your financing contingency deadlines are met, communicate about any timeline changes, and problem-solve together if issues arise.
At AmeriSave, we make this coordination easy through our digital platform and experienced loan officers who understand the importance of meeting deadlines and communicating proactively with all parties. When you work with AmeriSave, your real estate agent can trust that your financing is in good hands, which makes the entire transaction run more smoothly.
Your initial meeting with a potential agent is essentially a job interview where you're the hiring manager. Come prepared with questions about their experience, knowledge of your target area, recent transactions, and approach to representing clients.
The agent should ask detailed questions about your needs, timeline, budget, and preferences. For buyers, expect questions about your ideal home features, must-haves versus nice-to-haves, preferred locations, and financing status. For sellers, they'll want to understand your motivations for selling, timeline expectations, and what you hope to accomplish.
A good agent will discuss their marketing plan for sellers or property search strategy for buyers. They should explain how they communicate, what services they provide, and how they charge for those services. Under the new rules, agents must be transparent about fees from the very beginning.
Don't be surprised if the agent provides a comparative market analysis for your home or discusses current market conditions affecting your price range. This demonstrates their knowledge and gives you valuable information for decision-making.
The meeting should feel conversational but professional. You're evaluating whether this person has the expertise, communication style, and personality fit to guide you through a major financial transaction. Trust your instincts about whether the relationship feels right, and don't feel pressured to sign anything during the first meeting. Take time to interview multiple agents before making your decision.
Online discount brokerages and flat-fee services have grown in popularity, offering lower commission rates in exchange for fewer services. Whether they're a better deal depends entirely on your situation, experience level, and needs.
These services work well for some sellers, particularly those selling in hot markets where homes sell quickly regardless of marketing efforts, sellers with real estate experience who can handle some tasks themselves, and those comfortable with potentially less personal attention and support.
Discount services typically provide fewer services. You might need to coordinate your own showings, handle more of the paperwork yourself, get less marketing support, and receive limited negotiation assistance. For complex transactions or first-time buyers and sellers, these limitations often outweigh the cost savings.
Traditional full-service agents typically provide comprehensive marketing, handle all coordination and paperwork, are available for questions throughout the process, negotiate more effectively due to experience, and provide valuable local market expertise. The higher commission often translates to better results—either selling for more or buying for less—that exceed the cost difference.
Some brokerages like Real Estate Witch now offer hybrid models with 1.5% listing fees from established agents at major brokerages, potentially saving an average of $7,000 according to their data. These middle-ground options might provide the best of both worlds.
Ask yourself honestly: What's your real estate experience level? How much time can you dedicate to the process? How complex is your situation? What's your stress tolerance? The answers help determine whether a discount service provides genuine value or creates expensive problems.
The real estate market in 2025 continues to present both challenges and opportunities, depending on your specific situation and location. Home prices continue rising, though at a slower pace than during the pandemic years. The median existing home price reached $388,700 in February 2024, and Goldman Sachs predicts 4.4% growth through 2025. Other forecasters are more conservative, with the Mortgage Bankers Association projecting 3.3% growth, Fannie Mae predicting 1.5%, and Freddie Mac forecasting just 0.5% appreciation.
Inventory remains tight in many markets. New listings increased 14.8% year-over-year in February 2024 and 11.6% year-over-year in September 2024, signaling some improvement. But we're still well below historical norms for available homes. This continued supply shortage keeps upward pressure on prices despite higher interest rates.
Existing home sales increased 9.5% to 4.4 million in February 2024 according to NAR, and sales rose another 1.5% in September 2025. NAR Chief Economist Lawrence Yun attributes this growth to falling mortgage rates and improving affordability, stating that falling mortgage rates are lifting home sales.
The homeownership rate stands at 65.6% as of the first quarter of 2024, down slightly from previous years. This decline reflects ongoing affordability challenges, particularly for first-time buyers. The share of first-time buyers dropped from 32% in 2023 to just 24% in 2024, the lowest on record.
Your local market might look quite different from national trends. Real estate remains highly local, with some markets experiencing significant appreciation while others see flat or declining prices. Work with a knowledgeable local agent who can provide specific data and insights for your target area.
Come to agent interviews prepared with specific questions that reveal their experience, knowledge, and fit for your needs. Ask about their experience and track record: How many years have you been a licensed agent? How many transactions have you completed in the past 12 months? What percentage of your business comes from repeat clients and referrals? What's your average list-to-sale price ratio compared to area averages? How quickly do your listings typically sell compared to market averages?
Ask about their local market knowledge: Which neighborhoods do you work in most frequently? How have home prices trended in my target area over the past two years? What's the current inventory situation at my price point? How competitive is the market right now—are we seeing bidding wars or price reductions? What are the best and worst aspects of the neighborhoods I'm considering?
Ask about their working style and communication: How do you prefer to communicate? What's your typical response time to client messages? How often will you update me on activity and progress? Will I work directly with you or with members of your team? What days and times are you typically available for showings or meetings?
Ask about their specific services and approach: What's your marketing plan for my property? How do you determine listing price recommendations? How will you help me find properties before they hit the market? How do you help clients write competitive offers in multiple-bid situations? How do you handle negotiations and difficult situations?
Ask about fees and agreements: What are your fees and how are they structured? What services are included in those fees? What's included in your buyer agreement, and what are the termination provisions? Are there any additional costs I should expect?
Pay attention not just to the answers but to how the agent responds. Do they answer thoughtfully and specifically, or give vague generic responses? Do they seem genuinely interested in your situation, or are they just going through the motions? Do they ask good questions about your needs? Trust your instincts about whether this person seems like someone you'd want to work with during a potentially stressful process.
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